Rubber Toys
Special Needs Category
Season 3 Episode 24
| Brand | Rubbabu |
| Company Name | Iseo Chemdis Pvt. Ltd. |
| Founders | Meghla Bhardwaj, Rahul Butalia, Meera Butalia |
| Original Ask | 2 crores for 5% equity at the valuation of Rs. 40 crores |
| Deal | No Deal |
About the Product
Rubbabu ensures a healthy and safe working environment for all employees, considering ergonomics and safety standards. Every individual is treated with respect, fostering a culture of mutual support as they collaborate towards a brighter future for their families.Rubbabu toys are renowned for their safe materials. Their manufacturing processes are chemical-free, guaranteeing the safety of the toys. These toys surpass safety standards in the United States, Europe, Asia, and Australia, with no presence of lead or phthalates.Rubbabu toys are crafted from natural rubber foam, free from additional fillers or chemicals. This material is antimicrobial, hypoallergenic, and mildew-resistant, making it ideal for babies, toddlers, and children. Additionally, Rubbabu toys are designed without sharp edges or small parts, ensuring utmost safety.
Rubbabu toys, made from 100% pure natural rubber foam, adhere to fair-trade and eco-friendly practices. These toys exceed federal regulations, ensuring 100% safety for children during playtime. Rubbabu’s soft toys provide invaluable learning opportunities, starting from sensory exploration and hand-eye coordination at three months old. As children engage in imaginative play, they develop essential skills that serve as early indicators of success in STEM or STEAM fields. Rubbabu’s soft toys cater to infants as young as six months old, nurturing their cognitive and motor skills.
Founders & their story
- Meghla Bhardwaj
- Rahul Butalia
- Meera Butalia
Toys made from natural rubber foam are Rubbabu’s specialty. Their products, biodegradable in nature, are distributed worldwide. Catering to children with attention deficit hyperactivity disorder and Autism, Rubbabu offers a range of special needs adaptable toys. Each toy is meticulously handcrafted, ensuring quality and care in every piece. Rubbabu has expanded its market reach to China, and more recently, they have commenced production for the Indian market.
With a keychain priced at Rs 100 and a puzzle set priced at Rs 1500, Rubbabu offers a diverse range of products to cater to various preferences and budgets. In the context of the global toys market, estimated at a staggering 16.64 lakh crores, the niche of natural rubber toys amounts to Rs 16,640 crores. To sustain operations and meet demand, Rubbabu requires funds primarily for raw materials and maintains a working capital cycle of 90 days or more.
About the company
Rahul found immense joy in establishing new companies and factories for others. However, in 2005, when the owners decided to close down the toy factory he had set up, Rahul found himself at a critical juncture. Despite his passion for the toy industry and his desire to create his own brand, he lacked the necessary resources. Unfortunately, investors and bankers in India at that time showed little interest in a small-scale manufacturer aiming to build a brand within the toy sector. Despite this setback, Rahul’s dedicated staff, who adored working under his leadership, urged him to venture into entrepreneurship and start his own company. Thus, taking a leap of faith, Rahul and his wife Meera Butalia decided to embark on the journey of entrepreneurship, giving rise to Iseo, the company behind the renowned Rubbabu toys.
With three children of their own, Rahul and Meera recognized the simple yet essential needs of children when it came to toys. They conceptualized a range of toys – including balls, cars, animals, and blocks – crafted from natural rubber foam. The choice of this soft and pliable material ensured the safety of children during playtime, while the velvety texture added a tactile dimension to the toys. Furthermore, their commitment to utilizing natural and biodegradable materials resonated with their values. They established the Iseo factory where they began manufacturing timeless toys designed to foster creativity and imagination.
Situated in Gurgaon, India, a suburb of New Delhi, the Rubbabu factory employs over 100 full-time individuals. Here, toys are conceptualized, manufactured, and distributed to global retailers. Ensuring the welfare of their employees, all staff members receive health insurance and EPF accounts, with Iseo matching their contributions. Notably, the factory holds an ICTI Certification for Ethical Manufacturing, a testament to their commitment to ethical practices. Since its inception, Rahul has cultivated a culture where every employee is empowered and entrusted with responsibilities, fostering a sense of ownership within the company. Both Meera and Rahul extend their support beyond the workplace, assisting employees and their families during challenging times. Despite navigating the challenges inherent in a developing nation, the Iseo team takes pride in producing toys of the highest quality and safety standards.
Revenue
In the fiscal year 23-24 (until November), Rubbabu recorded sales of Rs 2.9 crores, a significant increase from the previous fiscal year’s figure of 1.29 crores in FY 22-23. Projections indicate that sales for the entire fiscal year 23-24 are expected to reach Rs 4 crores, showcasing a steady growth trajectory. Notably, sales in November 2023 alone amounted to 52 lakhs. Export sales account for 80% of Rubbabu’s revenue, while the domestic market in India contributes 20%. These figures underscore the company’s robust presence in international markets. For FY 23-24, Rubbabu anticipates a projected profit ranging between Rs 55-60 lakhs, reflecting the company’s sustained growth and profitability.
Founders’ Ask
2 crores for 5% equity at the valuation of Rs. 40 crores.
No Deal
Reasons for no deal
Namita: The investment philosophy does not match with the founders.
Vineeta: The founder has a tendency to not listen.
Ritesh: The upside is not too big.
Aman: He will not be able to work with the founder.
Anupam: He does not know how to give input to the founder.